Anyone Can Succeed in Real Estate
If you don’t own a home, now is a good time to lock in low interest rate mortgages. Find a way to buy something even if it’s a one bedroom condo. Real estate is one of the most consistent performers over time and will always be in demand. There is still some downside risk over the next few years but if you’re planning to hold your real estate holdings for awhile, you should be able to ride it out.
If you still maintain a full-time job, the best way to get started in this investment segment is to buy multi-family units in well-established or up-and-coming locations. Buy a few multi-family properties that generate enough rental income to pay the properties’ mortgages and maintenance expenses and hold them for awhile. Have a good property management company deal with upkeep, screening tenants, collecting rent and evictions; you just want to get a check every month. Don’t get me wrong, there are many ways to make money in this area but my experience is that other methods require too much time while working a full-time job. Having experienced a successful flip myself, I realized I never would have had the time to oversee the project had I not been unemployed and only going to school. It consumed as much time as a full time job and required a great deal of supervision.
If you want to learn about this area of investing, please don’t buy anything you see on TV. Most no money down ideas sound too good to be true because they are. I’ve also found most books to be less helpful than real life experience. The best way to educate yourself is to join a local real estate investment club. Join subgroups, learn as much as possible before you start and be sure to partner up when needed. Learn what works in real life and buy a few good properties. The important thing is to not rush. You have to be patient and take the time to gain knowledge from experts so you can learn what works and from their mistakes. You don’t need hundreds of units, just a few to get started, but as they say, the sky’s the limit.
Jamie has an MBA from Rutgers University and a Professional Certificate in Real Estate Finance, Investment and Development from NYU. He’s traded stocks since he was 13 and bought his first property within a year of graduating college. He also flipped properties and got out before the 2008 mortgage meltdown because he was able to see the market turning before it happened. He’s started two companies and also has experience in investing in antiques, collectibles, gold, silver and trading futures. He currently operates a website dedicated to helping people acheive financial freedom. For help with money visit www.jamiesmoneyadvice.com.